Taken from Colin Henderson's ever excellent Bankwatch
There is a brilliant collection of essays in the Jan/Feb issue of Foreign Affairs.
There is one lead piece from Francis Fukuyama entitled the Future of History (premium) which borrows from the title of his earlier book The End of History.
The broad theme is the failure of politics and the problem with the rise of economics over politics that has led (his words) to the end of left wing idealism as a counterweight to the right.
Foreign Affairs: He closes with this statement on what is needed:
It would have to have at least two components, political and economic. Politically, the new ideology would need to reassert the supremacy of democratic politics over economics and legitimate anew government as an expression of the public interest. But the agenda it put forward to protect middle-class life could not simply rely on the existing mechanisms of the welfare state. The ideology would need to somehow redesign the public sector, freeing it from its dependence on existing stakeholders and using new, technology-empowered approaches to delivering services. It would have to argue forthrightly for more redistribution and present a realistic route to ending interest groups’ domination of politics.
He got there by reviewing a host of historic movements and how they arrived.
- the introduction of the rights of property owners
- the concept that government can only tax when voters agree
- the power to vote for non property owners (an American invention – Andrew Jackson)
- that technology carries some of the blame for driving efficiency that requires fewer workers and provides for greater income generation for well educated, something that supported the growth of middle class.
He moves us quickly through the history of democratic movements which he notes fall out of demographic movements
To readmore and find out the implications for banks, visit: